The prime minister begins by emphasising there is much left to do on Iraq and the Middle East, but says today he wants to focus on the "challenges here in Britain", saying now is not the time for a "quiet life". "Reform tied to the investment" is the key, he tells the gathered reporters.

He repeats his pledge in today's Financial Times to "redraw the 1945 welfare settlement", condeming "top-down command and control" public services. He immediately cites foundation hospitals as the first example of this, saying the not-for-profit bodies will give new-found freedoms which one day will be extended to all hospitals.

Criminal justice, asylum, and education will be the focus of the next few months, Mr Blair says - getting in a bit of clear electioneering ahead of Thursday's elections.

"Reform is sometimes unpopular, almost always controversial," the prime minister says, but "now is the time to draw it through", again pointing to crime, asylum and education.

10.45am After nearly 10 uninterrupted minutes, the BBC's Andrew Marr, as always, is given the first question, rather puncturing Mr Blair's domestic electioneering by demanding to know when WMD will be found in Iraq.

Mr Blair says a thousand sites have now been identified, and he is confident such weapons will be found.

ITN's Nick Robinson tries to embarrass the prime minister by pointing out that Alastair Campbell's wife, Fiona Miller, has written to parents saying at the school where she is an adviser there is only money "for paper and pencils".

The prime minister repeats that "higher than ever" investment has gone into schools, but that if it not reaching some schools, we need to find out why.

Sky's Adam Boulton asks of the fate of those Iraqi leaders in the American pack of cards - whether, as has been reported, a deal should be cut with Tariq Aziz, whether Guantanamo Bay is a suitable venue for them, and whether those Britons in Cuba should now be released.

Mr Blair says he is "mystified" by the Tariq Aziz story, and that while the situation in Guantanamo Bay "can't continue", it is not a question of a "fixed amount of time", but that ongoing al-Qaida activities can be "cross-checked" with the Cuban inmates.

10.50am Mark Mardell asks why the UN are not invited back into Iraq to independently verify WMD finds.

The prime minister insists there is "no doubt" that Iraq had WMD, and that "people who crow" about their absence now should "wait a little bit".

"But they weren't as big a threat as you made out - because they weren't used," points out a slightly sweaty Mark Mardell.

"No it does not," insists Mr Blair. "As more evidence emerges you will find more links between the former Iraqi regime and terrorist organisations."

10.55am CNN's Robin Oakley asks if the prime minister is upset not to have been invited to a meeting of four EU states tomorrow. Mr Blair denies this, pointing out there are 11 other nations not invited.

Interestingly, Mr Blair adds: "European defence is necessary - there will be times when America does not want to get involved."

The Express brings it back to domestic issues, asking Mr Blair why he is not "flustered" by the lack of money reaching the schools.

"We will not just let the country down, we will let the Labour party down," insists Mr Blair, if we "walk away from reform".

11am Channel 4's Jon Snow demands repeatedly to know why Hans Blix cannot be readmitted to Iraq, since he is ready to go and was trusted by the prime minister before. "Because there has been a conflict in between," answers Mr Blair, somewhat feebly.

Mr Snow points out that there is a danger of the US and UK "codding up" some fake evidence of WMD in the interregnum.

"I hope you are joking," responds Mr Blair. "There is nobody in my administration or who works for any of our services who would do that."

"The Labour party has been a lot less bruised than some of you think," the prime minister tells C4's Elinor Goodman, saying mass resignations did not materialise.

"It would be a fundamental mistake to back away from public service reform" says Mr Blair, comparing it to Labour's "mistake" in the 1970s to think up the sell-off of council houses, but allow the Tories to implement it.

11.05am The Sun's Trevor Kavanagh says the chancellor is sucking up people's money "like a Dyson vacuum cleaner" for "marginal improvements" in the NHS.

The prime minister couldn't disagree more, urging reporters to come up to his Sedgefield constituency to see for themselves the differences being made.

"That's all I'm saying to you Trevor - a sense of balance."

The Evening Standard's Charles Reiss asks if strikes are the "price the public will have to pay" for reform of the public services.

Mr Blair says he is threatened with "waves of unrest" every six months, but they never materialise, insisting now there is "little support" for the firefighters strike.

11.10am A question on Northern Ireland - David Trimble is still rejecting the latest IRA's "clarifications", and is the May 29 election date flexible?

Mr Blair repeats his three questions, saying there is "obviously progress" on the first - that the IRA will dismantle "all" its arms.

Secondly, the full implementation of the Good Friday agreement implies the "end of the conflict".

But there is still a question to the "end of all paramilitary activity" - Mr Blair lists Castlereagh, Colombia and "gun running".

"I can't believe we can't get a straight answer on all of that."

11.15am An Australian reporter asks how "bruised" Mr Blair was personally by the conflict. The prime minister refers him to his interview with the Sun before Easter.

He also stresses that the real heroes are the troops.

The Mirror asks if Mr Blair is "happy to see pictures of US troops leading naked looters away at gunpoint". The prime minister gives neither a yes nor a no.

An American reporter asks if the prime minister has secret assurances from the US president, George Bush, to commit to the Middle East peace process?

Mr Blair lists President Bush's achievements - publicly committing to a two-state solution for the first time in American history.

A Middle Eastern journalist asks if the UK will "accept an Islamic state" in Iraq - unlike Donald Rumsfeld, who has rejected that option.

"Let's wait and see how that develops," deadbats Mr Blair, saying he suspects most Iraqis would like a regime that guarantees their freedoms.

"It's important that Iran realises that if it wants to be a partner in this process it has to behave in an open and transparent way."

11.20am The Guardian's Mike White asks the prime minister what his "birthday message" would be to Saddam Hussein. To laughter, Mr Blair refuses to answer.

A reporter asks if there was an attack on Syria, would Britain cooperate?

"There are no plans to invade Syria," repeats Mr Blair.

11.25am The prime minister refuses to answer in any way a BBC question asking whether a negative euro appraisal will allow for further evaluations in the life of this parliament.

Mr Blair tells John Kampfner of the New Statesman that disarming Saddam Hussein was the chief reason for war, but that removing the regime "followed on from that".

On asylum, the prime minister states that there is a time lag between success and the figures reflecting that.

"I can't be bothered to go through all that again," Mr Blair says, when asked about his 50th birthday, and where he hopes to be on this 60th.

11.30am The prime minister repeats his comments from today's FT, that he does not want the world to "break into rival centres of power", but to have a "partnership between Europe and America", saying it will recreate cold war tensions.

He lists the common values of Britain and France, though.

A Scandinavian reporter asks if Mr Blair will consider his leadership a failure if he does not take Britain into the euro.

"I'm not going to answer that," says the prime minister.

He also refuses to say whether he is happy that the Labour party has received £11m from one individual donor.